[quote=as]A loan officer offered me 15-year fixed for 3.75%. The total interest I will be paying is about 218k. If I do 4.25% for 30 year fixed, my total interest will be 494k. Between 15y and 30y, total interest saving will be about 276k.
Do you guys think it will go down to 3.5% for 15-year loan? Any suggestion? THX.[/quote]
Personally I would take the 15-year fixed at 3.75% straight to the bank (no pun intended). If rates decline materially you can always re-fi. Optionality for the borrower is the beauty of a mortgage with no pre-payment penalty.
